Thousands to leave work at 63 as retirement age goes down next year
Public sector seen as better employer
|
|
|
A large number of people in the private sector who are turning 63 plan to retire next year when new rules on old-age pensions come into effect.
According to calculations of the Finnish Centre for Pensions (ETK), more than 4,000 people born in 1942 plan to avail themselves of the possibility offered by the changed rules.
Under the new rules, which take effect in February, the age limit for old-age pension is to be made more flexible, allowing people to choose when to retire between the ages of 63 and 68.
The current retirement age is 65.
The changes are expected to lead to a flood of applications to Finnish pension companies, as many 64-year-olds also plan to take advantage of the new rules.
The Finnish Centre for Pensions says that it is too early to tell whether or not the reforms will ultimately have their intended consequence of encouraging more Finns to stay at work longer than before.
To persuade older workers to postpone their retirement, those who stay at work longer are rewarded with higher accrual of retirement benefits for each year after age 63 that a person remains active.
A fresh study indicates that about half of people working in the private sector want to retire already at the age of 60.
According to the ETK survey, employees in the public sector are not as eager to take early retirement. Only 39% of municipal employees and 31% of state employees want to leave their jobs at 60.
The study found that public sector employees generally felt more job satisfaction and better job security than those in the private sector.
Speaking at the opening of an ETK seminar on Tuesday, President Tarja Halonen said that the Finnish work pension system, even with all of its faults, is a "great achievement of the welfare society".
In her view, while Finnish pensions are not especially high, the system is also not very expensive.
She also said that while monetary incentives might encourage people to remain at work for a longer time, a good atmosphere at work, good leadership, and the possibility of employees to influence their work are of greater importance.
Helsingin Sanomat
|
| 24.11.2004 - TODAY |
 Thousands to leave work at 63 as retirement age goes down next year |
|
